Foreign Exchange & Fixed Income

Euro falls after Reuters exclusive interview with ECB’s Constancio

11 MAY 2017

The euro fell to a 2-1/2-week low against the dollar after the European Central Bank’s Vice President Vitor Constancio told Reuters in an exclusive interview that maintaining a loose monetary policy for longer was the safer way to avoid an economic relapse in the euro zone.

Constancio signaled no change of tack was likely at the Frankfurt central bank until the autumn, lengthening the odds on a move at the next meeting in June.

His remarks show the ECB’s top policymakers, headed by President Mario Draghi, were closing ranks against growing calls from Germany for winding down a 2.3 trillion euros ($2.50 trillion) bond-buying program in light of better economic data.